The S&P China manufacturing PMI survey shows conditions in the sector stagnated in March after a moderate expansion in February, with the survey's headline index falling to 50.0 from 51.6 in February. Respondents reported weaker demand after an initial boost at the start of the year in response to an easing of public health restrictions late 2022. Official PMI survey data published last week also showed activity in the manufacturing sector slowed in March.

Survey respondents reported output and new orders rose at a more subdued pace in March, while new export orders and employment both fell after increasing previously. The survey's measure of business confidence, however, remains at a level that indicates respondents expect strong improvement in economic conditions in coming months. The survey shows price pressures eased in March, with respondents reporting no change in input costs and that they lowered selling prices"fractionally".

S&P's manufacturing PMI emerged from long contraction in February, rising 2.4 points to 51.6 with little change at 51.4 expected in March.

The S&P Manufacturing Purchasing Managers' Index (PMI) is based on monthly a questionnaire that surveys of over 500 companies which provide an advance indication of what is really happening in the private sector economy by tracking changes in variables such as output, new orders, stock levels, employment and prices across the manufacturing sectors.

Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.

The S&P PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.